JPDA 06-103 Venture Seeks to Terminate PSC
Australia-listed Oilex Ltd., in its capacity as Operator and on behalf of the Joint Venture Participants to the Joint Petroleum Development Area (JPDA) 06-103 Production Sharing Contract (PSC) in the northern Bonaparte Basin off northwest Australia, reported that it has submitted to the Autoridade Nacional do Petróleo (ANP) of Timor Leste a request to terminate the PSC by mutual agreement in accordance with its terms and without penalty or claim (Request to Terminate).
The Request to Terminate will require the consent of the Timor Sea Designated Authority.
The submission of the Request to Terminate relates to ongoing Joint Venture concerns associated with uncertainty of PSC tenure. There have been several recent developments within the JPDA which have occurred outside the control and influence of the Joint Venture Participants. These include the:
- existence of separate unilateral rights to terminate the Certain Maritime Arrangements in the Timor Sea Treaty (CMATS) arising in favour of both the Government of Timor Leste and the Government of Australia; and
- initiation of formal arbitration proceedings by the Timor Leste Government against the Government of Australia to have the CMATS declared void ab initio
Managing Director of Oilex Ron Miller, said “In a situation where sovereign nations seek to resolve issues related to international boundaries, it is in the best interests of all parties to allow such matters to run their course. The PSC is the last offshore asset in Oilex’s portfolio and the company, on behalf of the JPDA06-103 joint venture, will continue to collaborate closely with the regulator throughout this process.”
The participants in the JPDA 06-103 Joint Venture are:
- Oilex (JPDA 06-103) Ltd (Operator) - 10.0 percent
- Japan Energy E&P JPDA Pty Ltd - 15.0 percent
- GSPC (JPDA) Limited - 20.0 percent
- Videocon JPDA 06-103 Limited - 20.0 percent
- Bharat PetroResources JPDA Ltd - 20.0 percent
- Pan Pacific Petroleum (JPDA 06-103) Pty Ltd - 15.0 percent
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